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The Bank of Japan and the Yen intervention
On the 14th of September, the Bank of Japan carried out a ‘check’ on currency rates, a move believed to be the first step on the way to a Yen intervention.On Thursday the 22nd of September, the BoJ intervened in the foreign exchange markets to stem the fall of the Japanese yen. Earlier, the BoJ kept rates at -0.1% combined with a ‘dovish’ policy guidance, clearly moving in the opposite direction to other central bank policies. On the other hand, the United States Federal Reverse, the FED, hiked rates from 2.5% to 3.25%, the highest level since 2008. This divergence in policy has seen the likes of USDJPY ... (full story)